If the Current Interest Rate Increases

question 37

Multiple Choice

If the current interest rate increases,

• A)the money demand curve shifts downward and the money supply curve remains unchanged.
• B)the money demand curve shifts upward and the money supply curve remains unchanged.
• C)there is a movement along the money demand curve and the money supply curve increases.
• D)there is a movement along the money demand curve and the money supply curve remains unchanged.

---

Definitions:

Bankruptcy Petition

A formal request filed in a bankruptcy court for protection from creditors, initiating the bankruptcy process.

Security Interest

A legal claim or right granted over assets as collateral to secure the performance of an obligation, usually repayment of a loan.

Chapter 7

A section of the U.S. Bankruptcy Code that provides for the liquidation of a debtor's assets to pay off creditors.

Good Faith

An honest intent to act without taking an unfair advantage over another person in a transaction.